Sebi slaps Rs 1.58 crore fine on 22 individuals for fraudulent trading activities

By: |
December 16, 2020 9:47 PM

According to the watchdog, the individuals were connected to each other and had indulged in reversing their trades among themselves for the purpose of creation of artificial volume.

SEBI newsThe regulator also noted that some of the individuals by way of trading among themselves had contributed to the new high price of the scrip.

Markets regulator Sebi has slapped fines totalling Rs 1.58 crore on 22 individuals for indulging in fraudulent trading activities in the shares of Synergy Bizcon Ltd. The regulator has imposed penalties ranging from Rs 5 lakh to Rs 15 lakh. Securities and Exchange Board of India (Sebi) had conducted an investigation into the scrip of Synergy Bizcon during the May 26, 2015 to October 14, 2016 period.

According to the watchdog, the individuals were connected to each other and had indulged in reversing their trades among themselves for the purpose of creation of artificial volume. It also created a false and misleading appearance of trading in the company’s shares without the intention of change of actual beneficial ownership.

Further, it was revealed that the individuals (noticees) while acting in tandem acted in manipulative manner to inflate the last traded price of the scrip and manipulated the price. The regulator also noted that some of the individuals by way of trading among themselves had contributed to the new high price of the scrip.

“… the trades of the noticees created misleading appearance of trading and contributed to increase in the scrip price of Synergy in a manipulative manner,” Sebi said in an order passed on Tuesday. They violated provisions of Prohibition of Fraudulent and Unfair Trade Practices.

“By executing manipulative trades, as has been executed by the noticees in the instant matter, the price discovery system itself is affected. It also has an adverse impact on the fairness, integrity and transparency of the stock market,” Sebi said while imposing the penalties. In a separate order passed on Wednesday, the regulator imposed a fine of Rs 3 lakh on Sinew Developers Pvt Ltd for not making timely disclosures regarding financial results for the half year ended March 31, 2019.

Separately, the watchdog slapped Rs 3 lakh fine on Silver Stallion Ltd for violating takeover norms while dealing with the shares of Birla Pacific Medspa Ltd (BPML).

As per the order passed on Wednesday, Silver Stallion acquired 9.47 per cent of the share capital of BPML which triggered the disclosure requirement under takeover norms, but it had failed to make the necessary disclosures.

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